Govt leaves GPF, other non-government PF, interest rate unchanged at 7.1%

 

            GPF and other Special Deposit Scheme interest rate of 7.1 per cent is applicable for April to June 2021 quarter and the new rate will become effective from 1st April 2021

·         After leaving interest rate unchanged for central government-backed small saving schemes like PPF, Sukanya Samriddhi Yojana, Post Office Savings, etc., the Narendra Modi Government has now decided to keep the General Provident Fund (GPF) and other non-government PF, Gratuity funds interest rate unchanged at 7.1 per cent. The Department of Economic Affairs under the Ministry of Finance made an official announcement in this regard and said that GPF and other Special Deposit Scheme interest rate of 7.1 per cent is applicable for April to June 2021 quarter and the new rate will become effective from 1st April 2021.

·         The budget division of the above-mentioned department issued an Office Memorandum in this regard and said, "During the year 2021-2022, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 7.1% (Seven point one percent) w.e.f. 1st April, 2021 to 30th June, 2021. This rate will be in force w.e.f. 1st April 2021."

The Ministry of Finance OM went on to add that the deposits made under the Special Deposit Scheme for Non-Government Provident, Superannuation and Gratuity Funds, announced in the Ministry of Finance (Department of Economic Affairs) shall with effect from 1st April, 2021 to 30th June, 2021 bear interest at 7.1% (seven point one percent). This rate will be in force w.e.f. 1st April, 2021.

There are 10 funds for which this interest rate announcement will apply and those funds are General Provident Fund (Central Services), Contributory Provident Fund (India), All India Services Provident Fund, State Railway Provident Fund, General Provident Fund (Defence Services), Indian Ordnance Department Provident Fund, Indian Ordnance Factories Workmen’s Provident Fund, Indian Naval Dockyard Workmen’s Provident Fund, Defence Services Officers Provident Fund and Armed Forces Personnel Provident Fund.

It will be the fifth consecutive quarter when the GPF interest rate will be 7.1 per cent. In April 2020, the central government had slashed GPF interest rate from 7.9 per cent to 7.1 per cent.